Nike reports better-than-expected profits

Nike, the American sportswear giant, has reported better-than-expected profits
for its fourth quarter driven by strong sales in its biggest market, the
United States.

Roger Federer is sponsored by Nike. Earlier this week at Wimbledon he was banned from wearing his orange-soled Nike trainers, as they fell of the tournament’s strict rules on the whiteness of players’ clothing.Photo: PA

The world's largest athletic shoe and clothing company reported that revenues increased 7pc in the three months to May 31, up to $6.7 billion (£4.4bn) from $6.24 billion. Analysts had expected revenues of $6.63 billion, according to FactSet.

By region, revenue in Nike's North American market rose 12pc, offsetting a 1pc decline in Western Europe and an 11pc decline in Japan. In China, which had been one of Nike’s fastest-growing markets, sales excluding currency fluctuations fell 1pc, the third quarterly decline in a row.

In a conference call with investors following the report, Nike CEO Mark Parker said "The race in China is a marathon. It's not a sprint, and we're set for the long run."

Like most global companies, Nike has been dealing with Europe's recession-hit economies and a slowdown in growth in China. Nike has been reducing its inventory in China and reworking its offerings there to adapt to the changing tastes of Chinese customers. The company has blamed the deterioration on a slowing Chinese economy and the discounts. In May, Nike replaced its top executive in the country.